The unique investors count of the MF industry increased 13 per cent last month to 6.02 crore against 5.33 crore logged in last year
The assets under management (AUM) of the mutual fund industry has hit 32 per cent of the overall bank deposits in January on the back of relentless SIP campaign and banks themselves turning out to be one of the biggest distributors of MF products.
The average MF asset as of January-end at ₹82 lakh crore, accounting for 32 per cent of bank deposits at ₹254 lakh crore.
In January 2025, the average AUM of MFs at ₹68 lakh crore accounted for 30 per cent of bank deposits at ₹226 lakh crore.
The assets of MFs have been growing much faster than bank deposits, as retail investors poured into equity market through SIP, which touched a record high of ₹32,000 crore last month.
The deposit with banks has increased 12 per cent to ₹254 lakh crore as of January against ₹226 lakh crore logged in the same period last year.
In the same period, the MF assets registered a growth of 20 per cent in last month to ₹82 lakh crore against ₹68 lakh crore logged in January, 2025.
The unique investors count of the MF industry increased 13 per cent last month to 6.02 crore against 5.33 crore logged in last year.
The aggregate NFO flows in last one year were at ₹65,100 crore of which equity funds comprised 61 per cent or ₹39,433 crore.
Shweta Rajani, Mutual Fund Head, Anand Rathi Wealth, said that over the past 10 years, the MF AUM to bank deposit ratio has increased significantly from 11 per cent in FY16 to the current level, as mutual funds are increasingly becoming a core savings vehicle.
Unlike previous cycles, where corrections triggered redemptions, investors have largely continued their systematic allocations, using volatility to average costs rather than exit, she said.
“We are not expecting moderation in flows, as SIP inflows continue to register consistent M-o-M growth despite market volatility and muted returns,” she said.
Even if return expectations moderate in the near term, new investors entering the industry offset potential tactical slowdown and this is unlikely to materially impact aggregate industry flows, she added.
Shashank Udupa, Fund Manager, smallcase, said SIPs have become a habit for retail investors and are treated like monthly savings commitments rather than tactical equity bets.
Lower markets investors to accumulate more units at cheaper valuations and many long-term investors actually view this as an opportunity, he said.
The steady rise in MF AUM clearly shows a long-term shift in household savings from fixed deposits to financial assets. Improving distribution through digital platforms and B30 penetration has also added first-time investors to the bunch, he added.
Published on February 23, 2026